Tuesday, October 11, 2005

The NHLPA’s Failed Bluff

Bluffing is an extremely important element to the game of poker. By representing that you have a better hand than you actually do, you may be able to take down a much bigger pot than your cards should actually win you. In order to bluff successfully, you must convince the other players that you have pocket aces, instead of the unsuited 7-2 you were actually dealt. Bluffing, however, is not limited to card games, and recent labor disputes in professional sports have taught that it is often not without risk.

Every year, some NFL players threaten to skip training camp if they do not receive a better contract. Sometimes this strategy works and other times, like this year, the owners call the players’ bluffs, and they are forced grudgingly to report to camp. Terrell Owen’s attempt in August to renegotiate a new contract, while generating an inordinate amount of media attention, ultimately failed to get him a new deal.

Another group tried a similar tactic in the past year but ended up losing on a much larger scale – the NHL Players Association. Trying to negotiate a favorable new labor agreement, the players’ union instead lost the entire season and gained almost no concessions when the new collective bargaining agreement was finally reached.

After negotiations stalled between the owners and the NHLPA last fall, the owners instituted a lockout on September 15. The main point of contention between the two sides was the owners’ insistence on a salary cap linked to team revenues. The players strenuously objected to the cap, initially proposing a 5 percent salary rollback and a luxury tax, which the owners quickly rejected.

Negotiations stalled as game after game was canceled. Finally, in mid-February, with only hours to go before the season would be officially canceled, the players’ union made a major concession – it agreed to a $49 million cap per team, which was $6.5 million higher than the cap offered by the owners. When the two sides refused to meet in the middle, commissioner Gary Bettman cancelled the rest of the season on February 15, making the NHL the first major sports league in North America to lose an entire season over a labor dispute.

While an extremely- shortened season wouldn’t have been practical anyway, the union and the owners needed to quickly resolve their dispute and agree to a new CBA before another season was wiped out. On July 13, nearly 10 months after the lockout began, the two sides finally agreed to a new labor deal. Looking at the terms of the deal, only one conclusion can be drawn – the players got fleeced.

First, the salary cap. Instead of the $42.5 million cap that the owners initially offered back in February, the new cap will be between $37 and $39.5 million and is linked to league revenues. Of course, the cap can increase or decrease from season to season if the revenues increase or decrease.

Second, there will be a 24 percent rollback of existing contracts. Now, here’s where the players start looking like fools. The union originally offered the rollback as an alternative to the salary cap; they never intended both things to happen. So not only are the players stuck with a salary cap, which they originally said they would never agree to, their existing salaries will also be considerably reduced. Maybe next time, the union will remember to take a condition off the table.

Third, a player can make no more than 20 percent of the salary cap, so say good-bye to $10 million plus salaries. The salary of the league’s best players will max out at $7.9 million, which isn’t so bad until you compare it to the monstrous salaries that are being paid to NBA deadweights like Allan Houston, Penny Hardaway, and Keith Van Horn. (You know what other NBA player is making more than the NHL max? Maurice Taylor, who clocked in with a salary of $8.45 million last season. Does anyone even know who this guy is?)

In addition to these three major wins for the owners, entry-level salaries also were rolled back and bonuses were limited. The only minor concessions the players gained were a salary floor, an increase in the minimum player salary, and the lowering of the unrestricted free agency age. Were these gains really worth the loss of the entire season? Few would say yes.

With the return of the NHL last week, the players, owners, and fans can start to put this sorry mess behind them. The sport has a long way to go to recover its standing among the three other major sports leagues. The institution of new rules will hopefully make the game more exciting and watchable to the casual fan. More importantly however, both sides need to take away a valuable lesson from the past year – when the new CBA expires in six years, bluffing may only lead to hockey’s quick exit from the American sports scene.

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